South Carolina Employment Security Commission Accountability Report 2002 - 2003

Section I – Executive Summary 3

1. Mission and Values 3

2. Key Strategic Goals for Present and Future Years 3

3. Opportunities and Barriers 4

(a)Opportunities

(b)Barriers

4. Major Achievements Over the Past Year 5 - 6

Section II – Business Overview 6

1. Organizational Structure 7

2. Number of Employees 7

3. Operation Locations 7 - 8

4. Expenditures and Appropriations Chart 8 - 9

5. Description of Services 9

Section III – Elements of Malcolm Baldrige Award Criteria 11

Category 1. Leadership 11 - 13

Category 2. Strategic Planning 13 - 15

Category 3. Customer Focus 15 - 18

Category 4. Information and Analysis 18 - 19

Category 5. Human Resources 19 - 21

Category 6. Process Management 21 - 23

Category 7. Business Results 24 - 49

Section I – Executive Summary

Mission and Values

The mission of the South Carolina Employment Security Commission is to provide quality, customer-driven workforce services that promote financial stability and economic growth.

The Employment Security Commission (ESC) has traditionally been responsible for paying unemployment insurance benefits, collecting unemployment taxes, finding jobs for people, and collecting federal employment statistics. While these functions haven’t changed, customer needs and service delivery methods have. As the leading workforce development and labor exchange agency in the state, ESC continually adapts to the demands of new technology and the global economy. Our main goal is to match job seekers with employers quickly and effectively, and we offer a variety of services to assist both groups.

The thrust of our new focus can be summarized in two words - customer satisfaction. We believe in excellent customer service and effective results.

The Employment Security Commission values are:

The customer comes first! ESC is the acronym, not only for Employment Security Commission, but also for “Effectively Serving Customers.”
All employees will be partners in change, providing meaningful input into the improvement of the Agency’s operations.
Key results and performance will be linked to long-term planning.
Open communication, both internal and external, will be promoted continually.
The latest technology and resources will be used to continuously enhance customer service.
New opportunities to build public and private partnerships will be sought continually.
ESC will maintain a diverse, professional, well-trained, motivated, and dedicated workforce.

Key Strategic Goals for Present and Future Years

Increased employee awareness of Agency’s policies, programs and services
Increased public awareness of Agency’s programs and services
Improved customer service
Quality workplaces for all employees
A prepared workforce
Collaborative partnerships
Improved communications

Opportunities and Barriers

Opportunities

Ongoing efforts to enhance customer service, particularly for businesses
Continue development of employee training programs
Creation of a committee to study workforce planning needs of the Agency
Alternative funding possibilities through grants to supplement federal funds
Enhance linkage between the ESC-based S.C. Occupational Information System (SCOIS) and One-Stop Workforce Centers (SCOIS software provides detailed information on career and training opportunities)
Continue improvement of internal communications through e-mail and the Agency’s Intranet and Internet websites
Increase emphasis on business development and employer relations
Continue employer-focused outreach efforts, similar to the “Job Market Monday” feature with WIS-TV in Columbia
Pursue a new and improved system for publicizing ESC and One-Stop Workforce Centers through SCETV’s new digital South Carolina Channel to debut in Fall 2003
Successful implementation of a new Unemployment Insurance (UI) tax system
Establishment of an integrated automated scheduling and case management system for UI appeals
Information technology funding for projects such as upgrading infrastructure and introducing voice recognition to assist in the prevention of fraud, as well as electronic funds transfer for benefit payments

Barriers

Major cutbacks in state and federal funding
Lower salaries than the private sector, making it difficult to retain qualified employees
Heavy workloads and staff reductions
Lack of a formalized needs assessment process or system
Limited efforts to build effective statewide and local collaborative partnerships
Lack of a systematic approach for monitoring employee and customer satisfaction
Lack of an effective method for monitoring new and existing human resource management systems

Major Achievements Over the Past Year

Internal communications have improved significantly with the January 2003 initiation of On the Job Today, an agency-wide newsletter e-mailed to each employee every Monday.
Many divisional and departmental policy and procedures manuals were added to the Agency’s Intranet site, thereby improving accessibility of information to employees.
During the economic slowdown, the Agency sponsored or collaborated with partners on more than fourteen job fairs or business expos across the state, serving over 60,000 people.
The success of the “Job Market Monday” partnership with WIS-TV in Columbia each Monday night continues to provide excellent exposure to ESC and the One-Stop Workforce System partnership in the Midlands and around the state.
The Agency’s Media Services section of the Communications Department won a Telly Award for video production for the second consecutive year.
A toll-free information line for labor market information was operated and enhancements were made.
Flexibility was emphasized within the Agency through extended operation hours, a “business casual” dress code, adjustable work schedules, and cross training.
A committee was established to study workforce-planning needs of the Agency.
Development of a UI tax system was continued with implementation expected in FY 2003-04.
The capability to take initial claims via the Intranet, as well as the Internet, was implemented.
The Agency’s On-the-Job-Training Program was redesigned and a national Department of Labor Recruitment Award was received for efforts in the Job Corps Program.
Assistive technology was installed in many One-Stop Workforce Centers to accommodate disabled clients.
Bilingual personnel, signs, and literature were provided to assist the growing Spanish-speaking population in the state.
The Agency remains a leader, nationally, in the promptness of decisions on lower authority appeals, with a quality rating of 100%. Approximately 99% of lower authority appeals decisions were issued within 30 days.
A “Virtual One-Stop” System was developed to provide client management and federal reporting capabilities for the Workforce Investment Act (WIA) program.
Many human resource management policies and procedures were implemented, addressing issues related to Occupational Safety and Health Administration (OSHA), wellness, security, and training.
A comprehensive staff development and training initiative provided induction, professional development, supervisory, leadership/management, and technology training to Agency employees and partners.
Comprehensive career and educational information was provided statewide through the Agency’s SCOIS at 611 sites in schools, libraries, and One-Stop Workforce Centers.

Continuous Improvement

The Accountability Report serves as the foundation of the Agency’s strategic planning process. This process involves the assessment of customer needs and the design of Agency programs and services as set forth in the plan, as well as an on-going evaluation of performance against established benchmarks and standards. A primary function of the Accountability Report is to inform. In this regard, the report provides a comprehensive overview of the Agency, which can be easily disseminated to employees, other state agencies and partnering organizations, and customers.

Section II -- Business Overview

The Employment Security Commission (ESC) is the leading workforce development and labor exchange agency in the state. ESC is responsible for the payment of Unemployment Insurance (UI) benefits, the collection of unemployment taxes, job placement and federal employment statistics. Our main goal is to match job seekers with employers quickly and effectively, and we offer a variety of services to assist both groups.

ESC works in concert with the federal government to preserve national economic stability. Funds come from payroll taxes paid by employers. These funds underwrite UI claims and the public employment service. (Administrative funds, it should be noted, are federal dollars that come from a portion of the tax paid by state employers.) ESC is also an active partner with business and industry, working with employers to hold down tax rates, and working hard to reduce the time that any worker is out of a job. At the state and local levels, special employer advisory committees actively work with ESC to ensure that all employment security programs are designed to meet the needs of business, and to ensure that the private sector has a strong voice in issues affecting employment and training of South Carolinians.

Organizational Structure

Number of Employees

At the end of FY 02-03, ESC had 1066 full-time employees and 167 temporary employees.

Operation Locations

ESC operates a network of offices serving all forty-six counties of the state. This includes thirty-five workforce centers, eleven itinerant points, two administrative offices, and a warehouse. In addition, a limited number of staff are assigned to provide services at six other locations.

The locations of the workforce centers are: Abbeville (Branch Office), Aiken, Anderson, Barnwell, Beaufort, Bennettsville, Camden, Charleston, Chester, Clinton, Columbia, Florence, Gaffney, Georgetown, Greenville, Greenwood, Hampton, Hartsville, Kingstree, Lancaster, Lexington, Liberty, Marion, Moncks Corner, Myrtle Beach/Conway, Newberry, Orangeburg, Rock Hill, Seneca, Spartanburg, Summerville, Sumter, Union, Walterboro, and Winnsboro. The itinerant point locations are: Allendale, Bishopville, Chesterfield, Denmark, Dillon, Edgefield, Manning, McCormick, Ridgeland, Saluda, and York. Additionally, staff is assigned to provide services at non-agency facilities in Anderson, Charleston, Hartsville, Marion, and Spartanburg.

The Administrative Offices - the Robert E. David Building, the C. Lem Harper, Sr. Building, and the warehouse - are located in Columbia, SC.

Base Budget Expenditures and Appropriations

01-02 Actual Expenditures / 02-03 Actual Expenditures / 03-04 Appropriations Act

Major Budget Categories

/ Total Funds / General Funds / Total Funds / General Funds / Total Funds / General Funds
Personal Service / $39,809,298 / $41,432,209 / $48,096,449
Other Operating / $15,071,573 / $212,374 / $13,774,749 / $193,663 / $13,583,801 / $177,827
Debt Service / $327,523 / $951,917 / $394,666
Permanent Improvements / $96,528 / $1,201,131
Case Services / $2,578,975 / $4,395,364 / $3,300,000
Distributions
to Subdivisions / $36,065,446 / $44,210,820 / $35,183,195
Fringe Benefits / $10,897,884 / $11,580,635 / $17,011,615
Non-recurring
Total / $104,847,288 / $212,374 / $117,546,825 / $193,663 / $117,569,726 / $177,827

Other Expenditures

Sources of Funds / 01-02 Actual Expenditures / 02-03 Actual Expenditures
Supplemental Bills / $0 / $0
Capital Reserve Funds / $0 / $0
Bonds / $0 / $0

Interim Budget Reductions

Total 01-02 Interim Budget Reduction / Total 02-03 Interim Budget Reduction
$14,569 / $18,111

Description of Services

Job Seeker Services

Individuals seeking to locate employment have full use of all services available to them in their job search. Job seekers who register with a workforce center are included in a database of available job seekers and matched with current job openings in the area. The system also refers qualified individuals to the employer for interviewing. Each workforce center is equipped with a resource area designed to give applicants self-service access to the latest technology for Internet job searches, the best resources for producing professional resumes, tools to evaluate their work skills and needs, and access to employer information. Information is also available to all applicants regarding training services, as well as referrals to other agencies and services designed to help individuals re-enter the workforce.

Employer Services

Employers have access to a full array of services to assist them with their workforce needs. Employers are encouraged to post job openings with ESC, which builds a database of job openings in the state. A job matching system is in place to match applicants with employers based on the requirements of the job. Specialized services such as recruiting, screening, and scheduling interviews of potential applicants are provided to employers. Employers experiencing or anticipating layoffs may receive additional services to help prepare their workforce for the separation. These services may include group orientations, on-site registrations, or on-site filing for Unemployment Insurance (UI) benefits.

Administering the State Unemployment Insurance (UI) System

The UI system is funded through an unemployment insurance tax levied against employers, to assist workers who may become unemployed. Workers who are unemployed or partially unemployed may apply for UI benefits. Application for benefits can be accomplished several ways – by visiting the nearest workforce center, electronically via the Internet, or by the worker’s employer (if he or she is still job-attached). After the initial application is taken, the employer is notified of the claim being filed. Statements are taken from the applicant and the employer as to the reason for separation and then a determination is issued. Should either party disagree with the final decision, they may initiate an appeal process. Once the benefit year begins, claimants file weekly by phone or by mail. Each claimant’s status will be reviewed periodically as he or she continues to receive benefits.

Administering the Workforce Investment Act Within South Carolina

ESC serves as the administrative entity for the Workforce Investment Act (WIA) in South Carolina and works in conjunction with the State Workforce Investment Board to provide planning and policy development for WIA and the Welfare to Work (WtW) program. WIA made provisions for the “one-stop” delivery system within twelve local areas that were established in the state. Each area has developed a system to provide core, intensive, and training services to customers seeking employment, designed to make them self-sufficient. Access to core services is available to all customers. Intensive services and training may be available to those customers that need extra help in finding a job or re-entering the workforce.

One-Stop Workforce Center Operator

WIA legislation provided that at least one comprehensive one-stop workforce center be designated in each of the twelve areas. The workforce center coordinates with various other agencies (partners) to provide the full array of services required under the Workforce Investment Act. Additional sites (satellite locations) can be established, if the need is determined by the Workforce Investment Board (WIB) in that area. The entity that operates a comprehensive workforce center or satellite location is determined by a competitive bidding process. Each area WIB seeks bids from those entities that can operate a one-stop workforce center, complying with WIA legislation. There is a total of fifty-two one-stop workforce centers in the state, seventeen of which are comprehensive sites and thirty-five of which are satellite sites. Of the seventeen comprehensive one-stops in the state, ESC currently operates thirteen. In addition, of the thirty-five satellite sites, ESC operates twenty-four of those. In the satellite offices, all basic services are provided. Additional services may be available on a limited basis.

Labor Market Information Services

ESC, in conjunction with the Bureau of Labor Statistics, provides a broad array of statistical data in various formats. The data provided are for use by job seekers, employers, educators, planners, economists, students, and others. Data are presented in publications, articles, news releases, pamphlets, and the Internet. Special data requests are often received. Types of data available include unemployment statistics, recent industrial employment numbers, occupational data, and wage survey results.

The South Carolina Occupational Informational Coordinating Committee (SCOICC) is also housed in the Agency. SCOICC operates the South Carolina Occupational Information System (SCOIS). This system was designed to address the need for career information in the state. It is available in all workforce centers, many school districts, and various other sites. Users may access computer software that offers resources to assess their skills and interests. This assessment is matched with potential occupations. Additionally, the user may review all available information pertaining to that occupation and locate facilities that offer the specific training required.

Other Specialized Services

Certain segments of the workforce also receive specialized services in the workforce centers. Veterans are given preference with registration, referrals to job openings and have designated program specialists to assist them. The Agency also monitors the employment and living arrangements of migrant and seasonal farm workers very closely. In addition, the Department of Labor has designated ESC as the coordinator for the Alien Labor Certification (ALC) and Work Opportunity/Welfare-to-Work Federal Tax Credit programs.

Economic Development Services

ESC is one of the main providers of data to economic development agencies around the state. The Agency distributes data on the general economic status of the state to various colleges and universities, as well as the general public, on a monthly basis. Companies considering relocation to South Carolina can find the data needed to make an informed decision.

Section III - Elements of Malcolm Baldrige Award Criteria

1.0 Leadership

The senior leadership of the Employment Security Commission consists of three levels: the executive staff, the senior leadership team, and the senior management team. The executive staff is comprised of the executive director and the three deputy executive directors. The senior leadership team is comprised of the executive staff and the seven department heads. The senior management team is comprised of the senior leadership team and the twenty-six management staff.

1. How do senior leaders set, deploy and communicate: a) short and long term direction; b) performance expectations; c) organizational values; d) empowerment and innovation; e) organizational values; f) organizational and employee learning; and g) ethical behavior?

1.1a-g – In fiscal year (FY) 2000-2001, the Agency established a strategic planning process to facilitate a systematic approach for future improvement efforts. Senior leadership continues to set, deploy, and communicate short-term and long-term directions that are part of the strategic plan. This is accomplished primarily through an Annual Administrative Planning Session, which was also initiated in FY 2000-2001. Follow-up planning sessions have allowed senior leadership to come together and work toward building a more effective vision for the Agency. In addition, the planning sessions allow senior leadership to identify progress over the past year and discuss goals and future implementation. The senior leadership team is continuing to work toward effectively communicating, throughout the Agency, the vision and goals set forth in the planning sessions.